The CML should be looking once more at lending terms to improve the affordability for borrowers and stimulate growth in the housing market, says Invest Connect.

With property prices on their way up to the pre-crash peak and the continued shortage of mortgage availability, the property investment company feel lenders should alter their terms to take this into account.

They suggest that mortgage lenders should see the extended profits of 30, 35, and 40 year terms like they did when releasing 20, 25 and 30 year terms. While some countries, including Australia just last year, have introduced multi generation mortgages to make rising property prices more affordable, the UK seems to shy away from providing the asset security to the lender over longer timescales.

According to research, the effects of recession, property prices and the cost of care for old and young have combined to revive the practice of several generations living under the same roof. Almost 36 million people in Britain now have experience of living as adults in the same home as another generation of their family. For almost three million of them, it is an arrangement which lasted as long as 10 years. It suggests that multi-generational households are becoming the norm. (source: Aviva August 2012).